SHENZHEN, China, Nov. 4, 2011 /PRNewswire-Asia/ -- Global Pharm
Holdings Group, Inc. (OTCBB: GPHG) ("Global Pharm" or the
"Company"), a China-based, growing
vertically integrated pharmaceutical company engaged in
pharmaceutical-related products distribution, Traditional Chinese
Medicine ("TCM") herbs cultivation and processing business through
its subsidiaries in Anhui,
Jilin, Guangdong and Shandong provinces, today announced that, on
October 31, 2011, it completed the
acquisition of the 100% equity interest of Qingdao Likang
Pharmaceutical Co., Ltd ("Qingdao Likang"), a city-level
pharmaceutical distributor located in Qingdao, Shandong
Province. With the completion of this acquisition, Qingdao
Likang becomes an indirect wholly owned subsidiary of the
Company.
"We are pleased to announce the completion of this acquisition,
which brings us to a total of six companies acquired this year.
Following the earlier acquisitions of three city-level
pharmaceutical distributors in Shandong
Province, this addition further extends our distribution
coverage into the city of Qingdao
and provides us with critical access to Shandong Peninsula, one of the most
economically developed regions in China with a relatively higher level of
consumption for pharmaceutical products," stated Mr. Yun-lu Yin,
Chief Executive Officer of Global Pharm. "For the rest of 2011, we
will focus on integrating these newly acquired businesses into our
current operations. Through our efforts, we believe that we will be
able to broaden our regional market coverage, expand our customer
base, diversify our product portfolios and enhance and maintain our
position in the Shandong
pharmaceutical market."
Qingdao Likang distributes approximately 4,000 types of
pharmaceutical-related products mainly to hospitals, community
clinics, and drugstores. It owns a modern warehouse of
approximately 1,100 square meters (approximately 11,840 square
feet), which has been certified under the Good Supply Practice
("GSP") quality standards in the PRC. Under these standards,
wholesale and retail enterprises in China must implement strict control on the
distribution of pharmaceutical products with respect to, among
other things, staff qualifications, distribution premises,
warehouse, inspection equipment and facilities, management and
quality control in order to obtain a GSP certificate to carry out
business in China.
Under the terms of this transaction, the Company is required to
pay approximately US$1.6 million in
cash to the former shareholders of Qingdao Likang.
About Qingdao Likang
Qingdao Likang, established on July 7,
1998, is a city-level pharmaceutical distributor in
Qingdao city, Shandong province. It occupies approximately
1,500 square meters (approximately 16,146 square feet) of
GSP-certified warehouse and offices, and distributes more than
4,000 types of pharmaceutical-related products, mainly including
injections, tablets, pastes, granules, capsules and medical
instruments.
About Global Pharm
Global Pharm Holdings Group, Inc., a growing integrated
pharmaceutical company, is engaged in the pharmaceutical
distribution, Traditional Chinese Medicine (TCM) herb cultivation
and herbal pieces processing business in China. The Company focuses on building
regional distribution channels, as well as local capillary sales
network with high-margin products portfolio. Currently, its sales
network covers Shandong,
Jilin, Anhui and Guangdong provinces. Global Pharm seeks to
establish an integrated value chain in the pharmaceutical industry
through strategic acquisitions within TCM production,
pharmaceutical distribution and the retail sectors. For further
information, please visit the Company's corporate website at
http://www.globalpharmholdings.com.
Forward-looking Statements
Certain statements set forth in this press release contain or
may contain forward-looking statements and information that are
based upon beliefs of, and information currently available to, our
management as well as estimates and assumptions made by our
management. Such statements reflect the current view of our
management with respect to future events and are subject to risks,
uncertainties, assumptions and other factors as they relate to our
industry, our operations and results of operations, plans for
future facilities, capital-expenditure plans and any businesses
that we may acquire. Although we believe that the expectations
reflected in the forward-looking statements are reasonable, we
cannot guarantee future results, levels of activity, performance or
achievements. Except as required by applicable law, including the
U.S. federal securities laws, we do not intend to update any of the
forward-looking statements to conform them to actual results.
For
Additional Information Contact
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Global Pharm Holdings
Group, Inc.
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Ms. Susan Liu
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Phone:
+86-755-3693-9373
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Email: susanliu@globalpharmholdings.com
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SOURCE Global Pharm Holdings Group, Inc.